School District No. 41 (Burnaby)

Transcription

1 Audited Financial Statements of School District No. 41 (Burnaby) September 26, :53

2 School District No. 41 (Burnaby) Table of Contents Managen1ent Report Independent Auditors' Report Statement of Financial Position - Statement 1 3 Statement of Operations - Statement : Statement of Changes in Net Financial Assets (Debt) - Statement : 5 Statement of Cash Flows - Statement 5 6 Notes to the Financial Statements Auditors' Conm1ents on Supplementary Financial Information Schedule of Changes in Accumulated Surplus (Deficit) by Fund - Schedule Schedule of Operating Operations - Schedule : Schedule 2A - Schedule of Operating Revenue by Source ; Schedule 2B - Schedule of Operating Expense by Object Schedule 2C - Operating Expense by Function, Program and Object Schedule of Special Purpose Operations - Schedule Schedule 3A - Changes in Special Purpose Funds and Expense by Object Schedule of Capital Operations - Schedule , Schedule 4A - Tangible Capital Assets Schedule 4C - Deferred Capital Revenue Schedule 4D - Changes in Unspent Deferred Capital Revenue September 26, :53

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4 pwc September 27, 2016 Independent Auditor's Report To the Board of Education of School District No. 41 We have audited the statement of financial position as at and the statements of operations, changes in net financial debt, and cash flows for the year then ended, comprising Statements 1 to 5, of School District No. 41, and the related notes, which comprise a summary of significant accounting policies and other explanatory information (financial statements). The attached supplementary information included in Schedules 1 through 4D is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Management's responsibility for the f'mancial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Section 23.1 of the Budget Transparency and Accountability Act of the Province of British Columbia, (J.nd for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. PricewaterhouseCoopers LLP Central City Tower, Avenue, Suite 1400, Surrey, British Columbia, Canada V3T sx3 T: , F: "PwC" refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

5 pwc Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of School District No. 41 as at and the results of its operations, changes in net financial debt and its cash flows for the year then ended in accordance with Section 23.1 of the Budget Transparency and Accountability Act of the Province of British Columbia. Emphasis of matter Without modifying our opinion, we draw attention to note 2 of the financial statements, which describes the basis of accounting and the significant differences between such basis of accounting and Canadian public sector accounting standards. Other matters The supplementary information included in Schedules 1 to 4D has not been audited. Chartered Professional Accountants

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7 School District No. 41 (Burnaby) Statement of Operations Year Ended Statement2 Revenues Provincial Grants Mini shy_ of Education Other Federal Gran ts Tuition Other Revenue Rentals and Leases Investment Income Amortization of Deferred Capital Revenue Total Revenue Expenses Instrnction District Administration Operations and Maintenance Transportation and Housing Total Expense Surplus (Deficit) for the year Accumulated Surplus (Deficit) from Operations, beginning of year Accumulated Surplus (Deficit) from Operations, end of year Budget Actual 217,953, ,817, , ,188 2,873,467 3,121,904 20,408,896 20,493,332 9,197,836 9,270,799 1,289,000 1,349, , ,227 7,400,000 7,480, ,372, ,793, ,854, ,786,650 5,846,440 5,563,445 34,680,185 34,323,557 1,311,461 1,547, ,692, ,221,343 (3,319,968) (1,427,944) 82,223,600 80,795, Actual 206,794, ,943 3,163,956 17,568,795 7,711,416 1,206, ,870 7,384, , 129, ,494,805 5,828,375 32,356,898 1,377, ,057,944 (928,568) 83,152,168 82,223,600 Version: September 26, :53 TI1e accompanying notes are ru1 integral pa1t of these financial statements. Page 4

8 School District No. 41 (Burnaby) Statement of Changes in Net Financial Assets (Debt) Year Ended Statement 4 Surplus (Deficit) for the year Effect of change in Tangible Capital Assets Acql1isition of Tangible Capital Assets Amortization of Tangible Capital Assets Total Effect of change in Tangible Capital Assets Acquisition of Prepaid Expenses Use of Prepaid Expenses Total Effect of change in Other Non-Financial Assets (Increase) Decrease in Net Financial Assets (Debt), before Net Remeasurement Gains (Losses) Net Remeasm ement Gains (Losses) (Increase) Decrease in Net Financial Assets (Debt) Net Financial Assets (Debt), beginning of year Net Financial Assets (Debt), end of year Budget Actual (3,319,968) (1,427,944) (5,902,000) (6,810,772) 9,100,000 9,079,062 3,198,000 2,268,290 (358,559) 197,229 (161,330) (121,968) 679, ,016 (188,994,312) (188,315,296) 2015 Actual (928,568) (5,870,167) 9,003,345 3,133,178 (197,229) 169,071 (28,158) 2,176,452 2,176,452 (191,170,764) (188,994,312) Version: September26, :53 The accompanying notes are an integral part of these financial statements. Page 5

9 School District No. 41 (Burnaby) Statement of Cash Flows Year Ended Statement Actual Operating Ti ansactions Surplus (Deficit) for the year (1,427,944) Changes in Non-Cash Working Capital Decrease (Increase) Accounts Receivable (2,122,550) Prepaid Expenses (161,330) Increase (Decrease) Accounts Payable and Accrued Liabilities 1,341,813 Unearned Revenue 2,140,824 Deferred Revenue 432,905 Employee Future Benefits 636,258 Amortization of Tangible Capital Assets 9,079,062 Amortization of Deferred Capital Revenue (7,480,825) Recognition of Deferred Capital Revenue Spent on Sites (14,366) Total Operating Transactions 2,423,847 Capital Transactions Tangible Capital Assets Purchased (6,810,772) Total Capital Transactions (6,810,772) Financing T1;ansactions Capital Revenue Received 9,670,710 Total Financing Transactions 9,670,710 Investing Transactions Investments in P01tfolio Investments (320,876) Total Investing Transactions (320,876) Net Increase (Decrease) in Cash and Cash Equivalents 4,962,909 Cash and Cash Equivalents, beginning of year 80,139,770 Cash and Cash Equivalents, end of year 85,102,679 Cash and Cash Equivalents, end of year, is made up of: Cash 10,542,094 Cash Equivalents 74,560,585 85,102, Actual (928,568) (179,875) (28,158) (76,970) 2,968, , ,861 9,003,345 (7,3 84,970) (12,289) 4,658,408 (5,870,167) (5,870,167) 5,147,364 5,147,364 (32,206) (32,206) 3,903,399 76,236,371 80,139,770 17,225,026 62,914,744 80,139,770 Version: September 26, :53 TI1e accompanying notes are an integral part of these financial statements. Page 6

10 SCHOOL DISTRICT NO. 41 (BURNABY) Notes to Financial Statements NOTE 1 AUTHORITY AND PURPOSE The School District operates under the authority of the School Act of British Columbia as a corporation under the name of 'The Board of Education of School District No. 41 (Burnaby)", and operates as "School District No. 41 (Burnaby)" (the "School District"). A board of education (the "'Board") elected for a four-year term governs the School District. The School District provides educational programs to students enrolled in schools in the district, and is principally funded by the Province of British Columbia through the Ministry of Education. NOTE 2 SUMMARY OF SIGNIRCANT ACCOUNTING POLICIES The financial statements of the School District are prepared by management in accordance with the basis of accounting described below. Significant accounting policies of the School District are as follows: a) Basis of Accounting These financial statements have been prepared in accordance with Section 23.1 of the Budget Transparency and Accountability Act of the Province of British Columbia. This section of the Act requires that the financial statements be prepared in accordance with Canadian public sector accounting standards except in regard to the accounting for government transfers as set out in Notes 2 (f) and 2 (k). In November 2011, Treasury Board provided a directive through Restricted Contributions Regulation 198/2011 providing direction for the reporting of restricted contributions whether they are received or receivable by the School District before or after this regulation was in effect. As noted in notes 2 (f) and 2 (k), Section 23.1 of the Budget Transparency and Accountability Act and its related regulations require the School District to recognize government transfers for the acquisition of capital assets into revenue on the same basis as the related amortization expense. As these transfers do not contain stipulations that create a liability, Canadian public sector accounting standards would require these grants to be fully recognized into revenue.

11 SCHOOL DISTRICT NO. 41 (BURNABY) Notes to Financial Statements NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POUaES (Continued) The impact of this difference on the financial statements of the School District is as follows: Year ended June 30, decrease in annual surplus by 2,249,895 June 30, increase in accumulated surplus and decrease in deferred contributions by 217,068,880 Year ended - increase in annual surplus by 2, 175,519 ' - increase in accumulated surplus and decrease in deferred contributions by 219,244,399 b) Cash and Cash Equivalents Cash and cash equivalents include cash and securities that are readily convertible to known amounts of cash and that are subject to an insignificant risk of change in value. These cash equivalents generally have a maturity of three months or less at acquisition and are held for the purpose of meeting short-term cash commitments rather than for investing. c) Accounts Receivable Accounts receivable are measured at amortized cost and shown net of allowance for doubtful accounts. d) Portfolio Investments The School District has investments in GIC's and term deposits that have a maturity of greater than three months at the time of acquisition. GIC's and term deposits are reported at amortized cost. Information regarding portfolio investments is disclosed in Note 4. e) Unearned Revenue Unearned revenue includes tuition fees received for courses to be delivered in future periods and receipt of proceeds for services or products to be delivered in a future period. Revenue will be recognized in that future period when the courses, services, or products are provided.

12 SCHOOL DISTRICT NO. 41 (BURNABY) Notes to Financial Statements NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES {Continued) f) Deferred Revenue and Deferred Capital Revenue Deferred revenue includes contributions received with stipulations that meet the description of restricted contributions in the Restricted Contributions Regulation 198/2011 issued by Treasury Board. When restrictions are met, deferred revenue is recognized as revenue in the fiscal year in a manner consistent with the circumstances and evidence used to support the initial recognition of the contributions received as a liability as detailed in Note 2 (k). Funding received for the acquisition of depreciable tangible capital assets is recorded as deferred capital revenue and amortized over the life of the asset acquired as revenue in the statement of operations. This accounting treatment is not consistent with the requirements of Canadian public sector accounting standards which require that government transfers be recognized as revenue when approved by the transferor and eligibility criteria have been met unless the transfer contains a stipulatior:i that creates a liability in which case the transfer is recognized as revenue over the period that the liability is extinguished. See note 2 (a) for the impact of this policy on these financial statements. g) Employee Future Benefits The School District provides certain post-employment benefits including vested and non-vested benefits for certain employees pursuant to certain contracts and union agreements. The School District accrues its obligations and related costs including both vested and non-vested benefits under employee future benefit plans. Benefits include vested sick leave, accumulating nonvested sick leave, vacation pay and retirement allowances. The benefits cost is actuarially determined using the projected unit credit method pro-rated on service and using management's best estimate of expected salary escalation, termination rates, retirement rates and mortality. The discount rate used to measure obligations is based on the cost of borrowing. The cumulative unrecognized actuarial gains and losses are amortized over the expected average remaining service lifetime (EARSL) of active employees covered under the plan. The most recent valuation of the obligation was performed at March 31, 2016 and projected to March 31, The next valuation will be performed at March 31, 2019 for use at June 30, For the purposes of determining the financial position of the plans and the employee future benefit costs, a measurement date of March 31 was adopted for all periods subsequent to July 1, The School District and its employees make contributions to the Teachers' Pension Plan and Municipal Pension Plan. The plans are multi-employer plans where assets and obligations are not separated. The costs are expensed as incurred.

13 SCHOOL DISTRICT NO. 41 (BURNABY) Notes to Financial Statements NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) h) Tangible Capital Assets The following criteria apply: Tangible capital assets acquired or constructed are recorded at cost which includes amounts that are directly related to the acquisition, design, construction, development, improvement or betterment of the assets. Cost also includes overhead attributable to construction. Donated tangible capital assets are recorded at their fair value on the date of donation, except in circumstances where fair value cannot be reasonably determined, in which case they are then recognized at nominal value. Transfers of capital assets from related parties are recorded at carrying value. Work-in-progress is.recorded as an addition to the applicable asset class at substantial completion. Tangible capital assets are written down to residual value when conditions indicate they no longer contribute to the ability of the School District to provide services or when the value of future economic benefits associated with the sites and buildings are less than their net book value. The write-downs are accounted for as expenses in the Statement of Operations. Buildings that are demolished or destroyed are written-off. Works of art, historic assets and other intangible assets are not recorded as assets in these financial statements. The cost, less residual value, of tangible capital assets (excluding sites), is amortized on a straight-line basis over the estimated useful life of the asset. It is management's responsibility to determine the appropriate useful lives for tangible capital assets. These useful lives are reviewed on a regular basis or if significant events initiate the need to revise. Estimated useful life is as follows: Buildings Furniture & Equipment Vehicles Leasehold Improvements Computer Software Computer Hardware 40 years 10 years 10 years 5 years 5 years 5 years

14 SCHOOL DISTRICT NO. 41.(BURNABY) Notes to Financial Statements NOTE 2 SUMMARY OF SIGNIFJCANf ACCOUNTING POLICIES (Continued) i) Prepaid Expenses Prepaid expenses consist mainly of prepaid fees that are paid for near the end of the current fiscal year. Prepaid expenses are stated at acquisition cost and are charged to expense over the periods expected to benefit from it. j) Funds and Reserves Certain amounts as approved by the Board are set aside in accumulated surplus for future operating and capital purposes. Transfers to and from funds and reserves are an adjustment to the respective fund when approved (see Notes 12 - lnterfund Transfers and Note 17 - Accumulated Surplus). k) Revenue Recognition Revenues are recognized in the period in which the transactions or events occurred that give rise to the revenues. All revenues are recorded on an accrual basis, except when the accruals cannot be determined with a reasonable degree of certainty or when their estimation is impracticable. Contributions received or where eligibility criteria have been met are recognized as revenue except where the contribution meets the criteria for deferral as described below. Eligibility criteria are the criteria that the School District has to meet in order to receive the contributions including authorization by the transferring government. For contributions. subject to a legislative or contractual stipulation or restriction as to their use, revenue is recognized as follows:. Non-capital contributions for specific purposes are recorded as deferred revenue and recognized as revenue in the year related expenses are incurred, Contributions restricted for site acquisitions are recorded as revenue when the sites are purchased, and Contributions restricted for tangible capital assets acquisitions other than sites are recorded as deferred capital revenue and amortized to revenue over the useful life of the related assets. Donated tangible capital assets other than sites are recorded at fair value and the related revenue amortized over the useful life of the assets. Donated sites are recorded as revenue at fair value when received or receivable.

15 SCHOOL DISTRICT NO. 41 (BURNABY) Notes to Financial Statements NOTE 2 SUMMARY OF SIGNIRCANT ACCOUNTING POUaES (Continued) The accounting treatment for restricted contributions is not consistent with the requirements of Canadian public sector accounting standards which require that government transfers be recognized as revenue when approved by the transferor and eligibility criteria have been met unless the transfer is recognized as revenue over the period that the liability is extinguished. See note 2 (a) for the impact of this policy on these financial statements. Revenue related to fees or services received in advance of the fee being earned or the service being performed is deferred and recognized when the fee is earned or service performed. Investment income is recorded in the period earned. When required by the funding party or related Act, investment income earned on deferred revenue is added to the deferred revenue balance. I) Expenditures Expenses are reported on an accrual basis. The cost of all goods consumed and services received during the year is expensed. Allocation of Costs Operating expenses are reported by function, program, and object. Whenever possible, expenditures are determined by actual identification. Additional costs pertaining to specific instructional programs, such as special and aboriginal education, are allocated to these programs. All other costs are allocated to related programs. Actual salaries of personnel assigned to two or more functions or programs are allocated based on the time spent in each function and program. School-based clerical salaries are allocated to school administration and partially to other programs to which they may be assigned. Principals and Vice-Principals salaries are allocated to school administration and may be partially allocated to other programs to recognize their other responsibilities. Employee benefits and allowances are allocated to the same programs, and in the same proportions, as the individual's salary. Supplies and services are allocated based on actual program identification. m) Financial Instruments A contract establishing a financial instrument creates, at its inception, rights and obligations to receive or deliver economic benefits. The financial assets and financial liabilities portray these rights and obligations in the financial statements. The School District recognizes a financial instrument when it becomes a party to a financial instrument contract.

16 SCHOOL DISTRICT NO. 41 (BURNABY) Notes to Financial Statements NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Financial instruments consist of cash and cash equivalents, accounts receivable, portfolio investments, accounts payable, and other current liabilities. All financial assets and liabilities are recorded at cost or amortized cost and the associated transaction costs are added to the carrying value of these investments upon initial recognition.. Transaction costs are incremental costs directly attributable to the acquisition or issue of a financial asset or a financial liability. All financial assets except derivatives are tested annually for impairment. When financial assets are impaired, impairment losses are recorded in the statement of operations. A write-down of a portfolio investment to reflect a loss in value is not reversed for a subsequent increase in value. For financial instruments measured using amortized cost, the effective interest rate method is used to determine interest revenue or expense. n) Measurement Uncertainty Preparation of financial statements in accordance with the basis of accounting described in note 2 a) requires management to make estimates and assumptions that impact reported amounts of assets and liabilities at the date of the financial statements and revenues and expenses during the reporting periods. Significant areas requiring the use of management estimates relate to the rates for amortization and potential impairment of assets and estimated employee future benefits. Actual results could differ from those estimates. NOTE 3 ACCOUNTS RECEIVABLE - OTHER RECEIVABLES Due from Federal Government 955, ,888 Due from Municipal Governments 51, ,550 Other 1,017, ,266 2,023,790 1,652,704 NOTE4 PORTFOLIO INVESTMENTS GIC's and Term Deposits 2,093,675 1,772,799

17 SCHOOL DISTRICT NO. 41 (BURNABY) Notes to Financial Statements NOTES ACCOUNTS PAYABLE AND ACCRUED LIABILITIES-OTHER Trade payables 5,868,245 4,312,332 Salaries and benefits payable 15,475,044 15,742,120 Accrued vacation pay 1,506,952 1,453,976 22,850,241 21,508,428 NOTE6 UNEARNED REVENUE Balance, beginning of year 17,321,578 14,353, 127 Changes for the year: Increase: Tuition fees collected 19,308,798 17,538,375 Decrease: Tuition fee revenue recognized 17,167,974 14,569,924 Net changes for the year 2,140,824 2,968,451 Balance, end of year 19,462,402 17,321,578 NOTE7 DEFERRED REVENUE Deferred revenue includes unspent grants and contributions received that meet the description of a restricted contribution in the Restricted Contributions Regulation 198/2011 issued by Treasury Board, i.e., the stipulations associated with those grants and contributions have not yet been fulfilled. Revenue June 30, Contributions recognized in June 30, 2015 received the period 2016 Provincial Grants ~ Ministry of Education 1,204,603 16,920,148 (16,955,774) 1,168,977 Provincial Grants - Other 884, ,698 (265,388) 823,499 Federal Grants 72,184 3,110,467 (3, 121,904) 60,747 School Generated Funds 4,999,053 7,137,517 (6,812,443) 5,324,127 Other 1,688,850 2,029,832 (1,814,248) 1,904,434 Total 8,848,879 29,402,662 (28,969, 757) 9,281,784

18 SCHOOL DISTRICT NO. 41 (BURNABY) Notes to Financial Statements NOTES DEFERRED CAPITAL REVENUE Deferred capital revenue includes grants and contributions received that are restricted by the contributor for the acquisition of tangible capital assets that meet the description of a restricted contribution in the Restricted Contributions Regulation 198/2011 issued by Treasury Board. Once spent, the contributions are amortized into revenue over the life of the asset acquired. Deferred Capital Revenue, beginning of year ,068, ,318,775 Increases: Provincial Grants - MOE Local Government Fees I Grants Investment Income Transfers from Deferred Capital Revenue - Capital Additions Decreases: Transfers to DCR - capital additions Transfers to net assets - site improvements Amortization of Deferred Capital Revenue Net Change for the year Deferred Capital Revenue, end of year 6,563,560 2,841, ,294 6,118,687 15,789,397 6,118,687 14,366 7,480,825 13,613,878 2,175, ,244,399 3,829,144 1,053, ,677 4,623,518 9,770,882 4,623,518 12,289 7,384,970 12,020,777 (2,249,895) 217,068,880

19 SCHOOL DISTRICT NO. 41 (BURNABY) Notes to Financial Statements NOTE9 EMPLOYEE FUTURE BENEFITS Benefits include vested sick leave, accumulating non-vested sick leave, retirement/severance and vacation benefits. Funding is provided when the benefits are paid and accordingly there are no plan assets. Reconciliation of Accrued Benefit Obligation Accrued benefit obligation - April 1 Service cost Interest cost Benefit Payments Actuarial (Gain) Loss Accrued benefit obligation - March ,718, , ,413 (624,501) (2,574,261) 8,539, ,667, , ,074 (640,614) 707,665 10,718,937 Reconciliation of Funded Status at End of Fiscal Year Accrued benefit obligation - March 31 Market value of plan assets - March 31 Funded status - (deficit) Employer contributions after measurement date Benefits expense after measurement date Unamortized net actuarial (Gain) Loss Accrued benefit (liability) - June 30 8,539,837 (8,539,837) 272,716 (193,961) (82, 178) (8,543,260) 10,718,937 (10,718,937) 296,330 (254,915) 2,770,520 (7,907,002) Reconciliation of Change in Accrued Benefit Liability Accrued Benefit Liability - July 1 Net expense for the year Employer Contributions Accrued benefit liability - June 30 7,907,002 1,237,145 (600,887) 8,543,260 7,407,140 1,210,880 (711,018) 7,907,002 Components of Net Benefit Expense Service cost Interest cost Amortization of net actuarial loss Net benefit expense , , ,438 1,237, , , ,953 1,210,880 The significant actuarial assumptions adopted for measuring the School District's accrued benefit obligations are: Discount rate - April 1 Discount rate - March 31 Long term salary growth -April 1 Long term salary growth - March 31 EARSL - March % 2.50% 2.50% + seniority 2.50% + seniority % 2.25% 2.50% + seniority 2.50% + seniority 11.7

20 SCHOOL DISTRICT NO. 41 (BURNABY) Notes to Financial Statements NOTE10 TANGIBLE CAPITAL ASSETS Balance at Cost: June 30, 2015 Additions Dis12osals Sites 48,626,306 14,366 Buildings 334, 139,241 6,088,5(1 Furniture & Equipment 5,420, ,600 (2,067,900) Vehicles 850,276 54,588 (51,624) Computer Software 347,700 35,619 (74,560) Computer Hardware 3,351, ,028 (215,582) Total 392,735,857 6,810,772 (2,409,666) Transfers Balance at (WIP) 48,640, ,227,812 3,665, , ,759 3,440, , 136,963 Balance at Accumulated Amortization: June 30, 2015 Additions Dis12osals Sites Buildings 116,895,413 7,659,687 Furniture & Equipment 3,000, ,713 (2,067,900) Vehicles 310,968 87,757 (51,624) Computer Software 161,141 73,102 (74,560) Computer Hardware 1,347, ,803 (215,582) Total 121,715,174 9,079,062 (2,409,666) Transfers Balance at (WIP) 124,555, 100 1,490, , ,683 1,832, ,384,570 Net Book Value: Net Book Value June 30, 2015 Sites 48,626,306 Buildings 217,243,827 Furniture & Equipment 2,420,438 Vehicles 539,308 Computer Software 186,559 Computer Hardware 2,004,245 Total 271,020,683 Net Book Value 48,640, ,672,712 2,175, , ,076 1,608, ,752,393

21 SCHOOL DISTRICT NO. 41 (BURNABY} Notes to Financial Statements NOTE 11 EMPLOYEE PENSION PLANS The school district and its employees contribute to the Teachers' Pension Plan and Municipal Pension Plan Uointly trusteed pension plans). The boards of trustees for these plans, representing plan members and employers, are responsible for administering the pension plans, including investing assets and administering benefits. The plans are multi-employer defined benefit pension plans. Basic pension benefits are based on a formula. As at December 31, 2014, the Teachers' Pension Plan has about 45,000 active members and approximately 35,000 retired members. As of December 31, 2014, the Municipal Pension Plan has about 185,000 active members, including approximately 24,000 from school districts. Every three years, an actuarial valuation is performed to assess the financial position of the plans and the adequacy of plan funding. The actuary determines an appropriate combined employer and member contribution rate to fund the plans. The actuary's calculated contribution rate is based on the entry-age normal cost method, which produces the long-term rate of member and employer contributions sufficient to provide benefits for average future entrants to the plans. This rate is then adjusted to the extent there is any amortization of any funding deficit. The most recent actuarial valuation of the Teachers' Pension Plan as at December 31, 2014, indicated a 449 million surplus for basic pension benefits on a going concern basis. The next valuation will be as at December 31, 2017 with results available in The most recent actuarial valuation for the Municipal Pension Plan as at December 31, 2012 indicated a 1,370 million funding deficit for basic pension benefits on a going concern basis. The next valuation was at December 31, 2015 with results available in Employers participating in the Plan record their pension expense as the amount of employer contributions made during the fiscal year (defined contribution plan accounting). This is because the Plan records accrued liabilities and accrued assets for the Plan in aggregate with the result that there is no consistent and reliable basis for allocating the obligation, assets and cost to individual employers participating in the Plan. The School District paid 23,469,692 for employer contributions to these plans in the year ended ( ,859,489). NOTE12 INTERFUND TRANSFERS lnterfund transfers between the operating, special purpose and capital funds for the year ended, were as follows: 897,653 transferred from the Operating Fund to the Capital Fund for capital equipment purchases to be made from Local Capital 19,364 transferred from the Special Purpose Fund to the Capital Fund for capital equipment purchases to be made from Local Capital

22 SCHOOL DISTRICT NO. 41 (BURNABY) Notes to Financial Statements NOTE13 RELATED PARTY TRANSACTIONS The School District is related through common control to all Province of British Columbia ministries, agencies, school districts, health authorities, colleges, universities, and crown corporations. Transactions with these entities, unless disclosed separately, are considered to be in the normal course of operations and are recorded at the exchange amount. NOTE14 CONTINGENCIES The School District is contingently liable as a guarantor of letters of credit provided by the Royal Bank of Canada to the City of Burnaby. The School District's maximum potential liability under the guarantee is 680,000 ( ,000). NOTE15 BUDGET FIGURES Budget figures included in the financial statements are the School District's amended annual budget approved by the Board through the adoption of an amended annual budget on February 22, Changes between the original annual budget (approved by the Board on April 28, 2015) and the amended annual budget are listed below: Original Amended Budget Budget Change Statement 2 Total Revenue 253,734, ,372,809 6,638,688 Total Expense 258,818, ,692,777 (4,874, 199) Surplus (Deficit) for the year (5,084,457) (3,319,968) 1,764,489 Budgeted Allocation of Surplus 4,391,457 2,673,968 (1,717,489) Budgeted Surplus (Deficit) for the year (693,000) (646,000) 47,000 Statement 4 Surplus (Deficit) for the year (5,084,457) (3,319,968) 1,764,489 Total Effect of change in Tangible Capital Assets 3,258,000 3,198,000 (60,000) (Increase) Decrease in Net Financial Assets (Debt), before Net Remeasurement Gains (Losses) (1,826,457) (121,968) 1,704,489

23 SCHOOL DISTRICT NO. 41 (BURNABY) Notes to Financial Statements. NOTE15 BUDGET FIGURES (Continued) Significant changes between the original and amended budget were: Statement 2 Total Revenues Budgeted revenues were amended based o'n actual student enrolment and increased International student tuition fees revenue. Expenses Budgeted expenses were amended based on revised projections/cost estimates and addition of Board approved use of internally restricted funds from Budgeted Allocation of Surplus 2015 year end surplus required for amended budget was less than original budget. NOTE16 EXPENSE BY OBJECT Salaries and benefits Services and supplies Amortization 219,371,806 33,770,475 9,079, ,221, ,702,099 30,352,500 9,003, ,057,944

24 SCHOOL DISTRICT NO. 41 (BURNABY) Notes to Financial Statements NOTE17 ACCUMULATED SURPLUS June 30, 2015 Capital Surplus 71,729,253 72,246,651 Operating Surplus Internally restricted operating surplus Ensuing year operating budget commitment School fund balances, learning resources and Program Development Other School District committed expenses 6,400,000 1,337,646 80,000 7,817,646 4,391,457 1,589, ,000 6,280,941 Unrestricted operating surplus Unrestricted operating surplus before Prior Period Adjustment Prior Period Adjustment 1,248,757 1,248,757 2,976, ,268 3,696,008 Total Operating Surplus 9,066,403 9,976,949 Accumulated Surplus 80,795,656 82,223,600 NOTE18 ECONOMIC DEPENDENCE The operations of the School District are dependent on continued funding from the Ministry of Education and various governmental agencies to carry out its programs. These financial tatements have been prepared on a going concern basis. NOTE19 RISK MANAGEMENT The School District has exposure to the following risks from its use of financial instruments: credit risk, market risk and liquidity risk. The Board ensures that the School District has identified its risks and ensures that management monitors and controls them. a) Credit risk : Credit risk is the risk of financial loss to an institution if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Such risks arise principally from certain financial assets held consisting of cash, cash equivalents and amounts receivable. The School District is exposed to credit risk in the event of non-performance by a borrower. This risk is mitigated as most amounts receivable are due from the Province and are collectible.

25 SCHOOL DISTRICT NO. 41 (BURNABY) Notes to Financial Statements NOTE 19 RISK MANAGEMENT (Continued) It is management's opinion that the School District is not exposed to significant credit risk associated with cash and cash equivalents as they are placed in recognized British Columbia institutions and the School District invests solely in placement of funds with institutions that have achieved the highest creditworthiness in the marketplace and earned a public reputation as a good credit risk. Cash equivalents consist of term deposits held with the Provincial Central Deposit Program. b) Market risk : Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk is comprised of currency risk and interest rate risk. Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the foreign exchange rates. It is management's opinion that the School District is not exposed to significant currency risk, as amounts held and purchases made in foreign currency are insignificant. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the market interest rates. The School District is exposed to interest rate risk through its cash equivalents. It is management's opinion that the School District is not exposed to significant interest rate risk as they invest solely in investments that are considered liquid (e.g. term deposits) that have a maturity date of no more than 3 years. c) Liquidity risk Liquidity risk is the risk thc:i.t the School District will not be able to meet its financial obligations as they become due. The School District manages liquidity risk by continually monitoring actual and forecasted cash flows from operations and anticipated investing activities to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the School District's reputation. Risk Management and insurance services for all School Districts in British Columbia are provided by the Risk Management Branch of the Ministry of Finance.

26 School District No. 41 (Burnaby) Schedule of Changes in Accumulated Surplus (Deficit) by Fund Year Ended Schedule 1 (Unaudited) Accumulated Surplus (Deficit), beginning of year Changes for the year Surplus (Deficit) for the year Interfund Transfers Tangible Capital Assets Purchased Local Capital Net Changes for the year Accumulated Surplus (Deficit), end of year - Statement 2 Operating Special Purpose Fund Fund 9,976,949 (12,893) 19,364 (897,653) (19,364) (910,546) - 9,066,403 - Capital Fund Actual Actual 72,246,651 82,223,600 83,152,168 (1,434,415) (1,427,944) (928,568) 19, ,653 (517,398) (1,427,944) (928,568) 71,729,253 80,795,656 82,223,600 Version: September 26, :53 Page8

27 School District No. 41 (Burnaby) Schedule of Operating Operations Year Ended Revenues Provincial Grants Ministty of Education Other Federal Grants Tuition Other Revenue Rentals and Leases Investment Income Total Revenue Expenses Instrnction District Administration -Operations and Maintenance Transpmiation and Housing Total Expense Operating Surplus (Deficit) for the year Budgeted Appropriation (Retirement) of Surplus (Deficit) Net Transfers (to) from other funds Local Capital Total Net Transfers Total Operating Surplus (Deficit), for the year Operating Surplus (Deficit), beginning of year Operating Surplus (Deficit), end of year 2016 Bud set 200,668, ,000 20,408, ,705 1,187, , ,757, ,118,564 5,457,048 24,339, , ,689,494 (1,931,968) 2,673,968 (742,000) (742,000) Actual Actual 200,847, ,974, , ,800 14,980 20,493,332 17,568, , ,199 1,247,717 1,105, , , ,178, ,258, ,030, ,968,937 5,284,560 5,601,239 24,026,328 22,353, , , ,191, ,737,767 (12,893) 520,600 (897,653) (859,378) (897,653) (859,378) (910,546) (338,778) 9,976,949 10,3 15,727 9,066,403 9,976,949 Schedule 2 (Unaudited) Operating Surplus (Deficit), end of year Intemally Restricted (Note 17) Unrestricted Total Operating Surplus (Deficit), end of year 7,817,646 6,280,941 1,248,757 3,696,008 9,066,403 9,976,949 Version: September 26, : 53 Page 9

28 School District No. 41 (Burnaby) Schedule of Operating Revenue by Source Year Ended P!'ovincial Grants - Ministry of Education Operating Grant, Ministry of Education Strike Savings Recovery Other Ministry of Education Grants Labour Settlement Funding Pay Equity Funding for Graduated Adults Economic Stability Dividend Other Misc and One-Time Grants Total P!'ovincial G!'ants - Ministl'y of Education Provincial Grants - Othel' Fede!'al Gl'ants Tuition Summer School Fees Continuing Education Offshore Tuition Fees Total Tuition Othel' Revenues Miscellaneous City of Burnaby Crossing Guards Other Program Fees Sundry Total Othel' Revenue Rentals and Leases Investment Income Total Ope!'ating Revenue 2016 Budget 197,924,666 1,441, , , , ,668, , ,478 1,383,200 18,677,218 20,408, ,000 83, , ,705 1,187, , ,757, Actual Actual 198,301, ,181,280 (7,482,4 70) 4,350,731 1,441,995 1,441, ,610 1,137, , , , ,847, ,974, , ,800 Schedule 2A (Unaudited) 14, ,915 1,347,134 1,234,210 18,793,283 16,334,585 20,493,332 17,568, , , , , , , , ,199 1,247,717 1,105, , , ,178, ,258,367 Version: Septembe1 26, :53 Page 10

29 School District No. 41 (Burnaby) Schedule of Operating Expense by Object Year Ended Salaries Teachers Principals and Vice Principals Educational Assistants Suppmt Staff Other Professionals Substitutes Total Salaries Employee Benefits Total Salaries and Benefits Services and Supplies Services Student Transportation Professional Development and Travel Rentals and Leases Dues and Fees Insurance Supplies Utilities Total Servicl!S and Supplies Total Operating Expense 2016 Budget 111,962,940 8,479,188 14,851,375 18,813,741. 3,710,357 6,193, ,010,708 39,276, ,287,362 9,484, , , ,288 76, ,610 7,690,547 2,985,410 22,402, ,689, Actual Actual 111,593, ,018,015 8,473,295 8,441,189 14,721,137 14,261,787 18,724,900 18,595,785 3,763,169 3,867,522 5,854,606 5,950, ,130, ,135,238 39,391,460 37,686, ,521, ,822,147 9,134,010 8,093, , , , , , ,282 78,391 74, , ,964 7,572,568 6,724,291 2,727,476 2,719,020 21,670,049 19,915, ,191, ,737,767 Schedule 2B (Um1udited) Version: September 26, :53 Page 11

30 School District No. 41 (Burnaby) Operating Expense by Function, Program and Object Year Ended 1 Instruction 1.02 Regular Instmction 1.03 Career Programs 1.07 Library Services 1.08 Counselling 1.10 Special Education 1.30 English Language Learning 1.31 Aboriginal Education 1.41 School Administration 1.60 Summer School 1.61 Continuing Education 1.62 Offshore Students Total Function 1 4 District Administration 4.11 Educational Administration 4.40 School District Governance 4.41 Business Administration Total Function 4 5 Operations and Maintenance 5.41 Operations and Maintenance Administration 5.50 Maintenance Operations 5.52 Maintenance of Grounds 5.56 Utilities Total Flinction 5 7 Tnnsportation and Housing 7.70 Student Transportation Total Function 7 9 Debt Services Total Function 9 Total Functions 1-9 Principals and Educational Teachers Vice Principals Assistants Salaries Salaries Salaries 80,412, , , ,267 2,761,645 14, ,801 3,378,761 9,553, ,813 13,26 1,110 5,940, , , , , ,000 6,861,755 1,061, , ,165 1,099, ,126 5,148,456 91, , ,593,272 8,118,712 14,721, , , ,593,272 8,473,295 14,721,137 Support Other Staff Professionals Substitutes Total Salaries Salaries Salaries Salaries 789, ,775 3,432,900 85,707, , ,602 1,211, , ,000 3,273,823 3,378,761 1,404,402 24,598, ,988 6,329,439 30,826 1,076,220 4,153,054 89,369 11,629,178 29,660 9,492 85,020 1,490, , ,884 79,890 1,772, , ,647 45,737 5,975,021 5,649, ,798 5,667, ,443, ,110 1,011,975 1,541,668 53, , , ,125 1,090,011 1,923,136 1,062,024 2,364,259-3,780, , , ,709 10,757, ,872 10,944, , ,655 11,787, , ,872 12,668, ,287 12, , ,287 12, ,778 18,724,900 3,763,169 5,854, ,130,379 Schedule 2C (Unaudited) Ve1'Sion: September 26, :53 Page 12

31 School District No. 41 (Burnaby) Operating Expense by Function, Program and Object Schedule 2C (Unaudited) Year Ended 1 Instmction 1.02 Regular Instruction 1.03 Career Programs 1.07 Library Services 1.08 Counselling 1.10 Special Education 1.30 English Language Leaming 1.31 Aboriginal Education 1.41 School Administration 1.60 Summer School 1.61 Continuing Education 1.62 Offshore Students Total Function 1 Total "Salaries 85,707,842 1,211,663 3,273,823 3,378,761 24,598,719 6,329,439 1,076,220 11,629,178 1,490,049 1,772,644 5,975, ,443,359 Employee Total Salaries Benefits and Benefits 21,406, ,114, ,537 1,486, ,904 4,027, ,646 ' 4,138,407 5,916,829 30,515,548 1,502,217 7,831, ,609 1,343,829 2,673,483 14,302, ,042 1,775, ,520 2,080,164 1,385,366 7,360,387 35,533, ,976,484 Services and SuEEiies Actual Budget Actual 6,970, ,084, ,349, ,175,067 33,624 1,519,824 1,548,345 1,388, ,012 4,363,739 4,435,528 4,326,301 4,138,407 4,245,580 3,855, ,181 30,938,729 31,106,871 29,555,934 7,821 7,839,477 7,917,249 7,056,762 64,251 1,408,080 1,405,711 1,326,963 4,443 14,307,104 14,352,881 14,293, ,815 1,892,906 1,955, , ,076 2,192,240 2,030,387 2,897,393 3,984,886 11,345,273 11,771,790 9,939,336 12,054, ,030, ,118, ,968,937 4 District Administration 4.11 Educational Administration 4.40 School District Governance 4.41 Business Administration Total Function 4 1,541, ,062 1,923,136. 3,780, ,952 1,865,620 36, , ,182 2,343, ,407 4,561,273 75,848 1,941,468 1,965,647 2,069, , , , , ,935 2,819,253 2,954,256 3,014, ,287 5,284,560 5,457,048 5,601,239 5 Operations and Maintenance 5.41 Operations and Maintenance Administration 5.50 Maintenance Operations 5.52 Maintenance of Grounds 5.56 Utilities Total Function 5 959,709 10,944, ,655-12,668, ,256 1,151,965 2,676,501 13,620, , ,097 3,060,199 15,728, ,585 1,633,550 1,729,770 1,589,914 4,324,302 17,944,815 17,908,207 16,491, ,576 1,727,673 1,715,912 1,564,195 2,720,290 2,720,290 2,985,410 2,707,339 8,297,753 24,026,328 24,339,299 22,353,364 7 Transpoi tation and Housing 7.70 Student Transportation Total Function 7 237, ,778 17, ,507 17, , , , , , , , , ,227 9 Debt Services Total Function 9 Total Functions ,130,379 39,391, ,521,839 21,670, ,191, ,689, ,737,767 Version: September 26, :53 Page 13.

32 School District No. 41 (Burnaby) Schedule of Special Purpose Operations Year Ended Revenues Provincial Grants Ministry of Education Other Federal Grants Other Revenue Investment Income Total Revenue Expenses Instmction District Administration Operations and Mainten ~nce Transportation and Housing Total Expense Special Purpose Surplus (Deficit) for the year Net Transfers (to) from other funds Tangible Capital Assets Purchased Total Net Transfe1 s Total Special Purpose Surplus (Deficit) for the year 2016 Budget 17,284, ,209 2,873,467 8,743,131 10,000 29,063,283 26,736, ,392 1,240, ,878 28,903, ,000 (160,000) (160,000) Actual Actual 16,955,774 15,807, , ,143 3,121,904 3,148,976. 8,617,103 7,201,217 9,588 28,969,757 26,322,310 26,755,874 24,525, , ,136 1,218,167 1,000, , ,639 28,950,393 26,316,832 19,364 5,478 (19,364) (5,478) (19,364) (5,478) Schedule 3 (Unaudited) Special Purpose Surplus (Deficit), beginning of year Special Purpose Surplus (Deficit), end of year Version: September 26, :53 Page 14

33 School District No. 41 (Burnaby) Changes in Special Purpose Funds and Expense by Object Year Ended Deferred Reveime, beginning of year Add: Restricted Grants Provincial Grants - Ministiy of Education Provincial Grants - Other Federal Grants Other Investment Income Less: Allocated to Revenue Deferred Revenue, end of year Revenues Provincial Grants -1\llinistiy of Education Provincial Grants - Other Federal Grants Other Revenue Investment Income Expenses Salaries Teachers Principals and Vice Principals Educational Assistants Support Staff Other Professionals Substitutes Employee Benefits Services and Supplies Net Revenue (Expense) before Inter fund Transfers Interfund Transfers Tangible Capital Assets Purchased Net Revenue (Expense) Annual Learning Special Facility Improvement Education Grant Fund Eguil!ment 200, ,539 92,657 1,010,174 4,100,143 10,058 1,794 1,011,968 4,100,143 10,058 1,200,560 4,165,085 59,681 12, ,597 43,034 1,198,766 4,165,085 59,681 1,794 1,200,560 4,165,085 59,681 2,731, ,271 54,557 8,113 54,557 3,297,526-17, ,559 1,128,445 46,042. 1,200,560 4,165,085 46,042 13,639 (13,639) (13,639) Schedule 3A (Unaudited) Scholarships School Ready, and Generated Strong Set, Community- Bursaries Funds Start Learn OLEP LINK 461,070 4,999,053 1,097 18,455 55, , , , ,346 2,285,247 44,792 7,137,517 14, ,349,001 7,794 52,586 7,137, , , ,346 3,634,248 50,012 6,812, ,162 92, ,398 3,701, ,644 5,324, ,695 78, , ,000 92, ,398 2,285,247 42,218 6,812,443 15, ,416,487 7,794 50,012 6,812, ,162 92, ,398 3,701,734 14,988 48, , , , , ,113 18,309 6,677 57, ,841 33,297 54,808 2,139,638 87,002 6,460 11, ,567 50,012 6,812,443 27,319 52, ,990 1,014,804 50,012 6,812, ,162 92, ,398 3,696,009 5,725 5,725 (5, 725) Version: S-7'n2 September 26, :53 Page 15